Enviro Infra Engineers IPO

Enviro Infra Engineers IPO Details

Enviro Infra Engineers IPO Date

The Enviro Infra Engineers IPO will open for subscription on November 22, 2024, and the closing date for the IPO is November 26, 2024, according to the offer document filed by the company with the SEBI. After this, investors are expected to be updated about the allotment status on Wednesday, November 27, 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on November 28, 2024. The shares will be listed on the NSE and the BSE on Friday, November 29, 2024. 

Enviro Infra Engineers IPO Price Band

The IPO combines a fresh issue and an offer-for-sale (OFS) component. The IPO price band has been set between ₹140 to ₹148 per share. Interested investors can choose a price within this band to apply for the IPO. 

The IPO is a book-building issue of ₹650.43 crore, with a fresh issue of 3.87 crore shares (amounting to ₹572.46 crore) and an offer for sale of 0.52 crore shares (totalling ₹77.97 crore). 

The Enviro Infra Engineers IPO listing price will be determined on November 29, 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

Enviro Infra Engineers IPO Lot Size

The Enviro Infra Engineers IPO details have been declared. The minimum lot size for an application is 101 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹650.43 crore. 

About Enviro Infra Engineers

Incorporated in June 2009, Enviro Infra Engineers designs, constructs, operates and maintains Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government authorities and local bodies.

Its expertise includes Sewage Treatment Plants (STPs), Sewerage Schemes (SS), Common Effluent Treatment Plants (CETPs) and Water Treatment Plants (WTPs), as well as related infrastructure like pumping stations and pipelines for water supply. 

The company has successfully developed 28 WWTPs and WSSPs over the last seven years, including 22 projects with capacities of 10 MLD or more. As of June 30, 2024, its order book includes 21 ongoing projects valued at ₹1,906.2 crore. These projects are allocated to the company after successful bidding for the tenders issued by state governments and urban local bodies (ULBs). 

For project development, the company has an in-house team of 180 engineers that handles the projects entirely, from design and procurement to execution and commissioning. Additionally, the company engages in joint ventures with other infrastructure and construction firms to achieve pre-qualification for higher-valued projects. As of June 30, 2024, Enviro Infra Engineers has executed 5 WWTPs and WSSPs projects in partnership with joint venture partners.

Between FY22 and FY24, it saw a CAGR rise of over 48% in its revenue from operations and 46.5% in its net profit. Moreover, the global water and wastewater treatment market is expected to grow at a CAGR of 6.1% to reach $521 billion by 2033, which indicates steady industry growth. Besides this, the rising demand for water and the growing need for wastewater treatment in emerging economies like India will likely be positive for the company.  

Now, Enviro Infra Engineers Limited is launching its initial public offer (IPO). The total IPO issue size is ₹650.43 crore, comprising fresh issues and offer for sale. Its shares will be listed on the NSE and BSE.

Company Name:  Enviro Infra Engineers Limited

Company Established On: June 19, 2009

Company Type: Private Limited Company

CEO :  Sanjay Jain

MD : Manish Jain 

Financial snapshot

Enviro Infra Engineers IPO Analysis

Strengths and opportunities

1. The company has in-house execution capabilities and a track record of timely delivery and maintaining high-quality engineering and construction. It has an in-house designing, engineering, and execution team of 180 engineers. 
2. As of June 30, 2024, it had a diversified order book consisting of 21 projects across the country, with an aggregate value of ₹ 1,906.28 crore.
3. The company uses advanced technologies in the construction and installation of WWTPs or WSSPs, continuously upgrading its technical capabilities to offer its clients quality services at lower costs.
4. Between FY22 and FY24, it saw a CAGR rise of over 48% in its revenue from operations and 46.5% in its net profit.
5. By working on new projects, the company has consistently increased its presence in existing geographies such as Gujarat, Rajasthan, Punjab, Karnataka, Haryana, Uttar Pradesh, Madhya Pradesh, and Chhattisgarh.
6. The company’s promoters are immensely experienced, and the senior management team has more than two decades of individual experience in the water and waste-water treatment industry, driving the firm’s growth. 

Risks and threats

1. Enviro Infra Engineers’s business is working capital intensive, and insufficient cash flows, which have occurred in the past and can happen again, can negatively affect its operations.
2. The company relies on third-party firms for its project execution and implementation. Any delay in their obligations could adversely affect the company’s projects
3. An increase in labour costs and construction materials prices, as well as changes in contract charges, can negatively affect the company’s business and revenue. 
4. As the company relies on its joint venture (JV) partners for many of its projects, a JV partner's failure to fulfil its obligations can pose additional financial and performance risks to the company, further reducing profits. 
5. The company can fail to implement its planned initiatives, which may affect its growth and future prospects. 
6. The actual costs of implementing the WWTPs and WSSPs projects can vary significantly from the estimates, and the company may be unable to recover some or all of the additional expenses incurred, which can negatively impact its cash flow and financial performance. 
7. If the company is unable to repay its debt obligations, it can seriously affect its business, credit rating and financial condition. 

How to apply for the Enviro Infra Engineers IPO

If you are interested to invest in Enviro Infra Engineers IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Enviro Infra Engineers IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app